ARSS Infrastructure Projects Limited has informed the Exchange about Corporate Insolvency Resolution Process
Awaiting price reaction for this filing.
ARSS Infrastructure Projects Limited has informed the stock exchange that a Corporate Insolvency Resolution Process (CIRP) has been initiated against the company. Under the Insolvency and Bankruptcy Code (IBC), this process typically begins when the National Company Law Tribunal (NCLT) admits a petition from a financial or operational creditor. A Resolution Professional will now take charge of the company's operations and assets. The company's existing board is generally superseded during this period, and lenders take control of the resolution process. Shareholders typically face significant uncertainty regarding the recovery of their investment value.
This is a highly negative development for shareholders. Stock prices usually decline sharply on CIRP announcements, and equity holders rank last in the waterfall mechanism under IBC, meaning recovery is often minimal or nil. Existing shares may be diluted or extinguished depending on the resolution plan approved by NCLT.